Remote property deals in Kenya will give you the opportunity to tour one of the most exotic East African countries all the while giving the opportunity to make good money.
Why buy property remotely in Kenya?
I have a thing about exotic locations. Yes, part of the reason why I am an ardent fan of remote property deals is because, every now and again, I get to travel to such beautiful place on both business and pleasure. Kenya is one such destination that offers amazing opportunities for real estate investors.
Last year (2015), the real estate market contributed 8.12% of the nations GDP. These numbers do not lie. The real estate market in Kenya is performing well, which is why any discerning investor would want to take a closer look at Kenya property real estate investment opportunities.
But of course, owing to the real estate market crash that took place in the US a few years back; as well as how badly it affected those involved and the world in general, it is only logical that most people would be skeptical when it comes to investing in the housing market. Granted, every investment undertaken requires proper research and due prudence if the investor’s money is to be protected. That being said, here are 5 good reasons why investing in the Kenya property real estate sector is a great idea right now.
There is a huge housing deficit driving the growth
The housing industry in Kenya is driven by a huge housing deficit affecting the country at large and especially the urban areas. As things stand, the urban population in Kenya is growing at an average rate of 4.2% every year. This means that every year, the housing sector must put up an extra 150,000 housing units to cater for this growth. Today, the housing market can only manage about 20,000 units per year. This has led to a huge housing deficit with more and more city dwellers struggling to find good housing at affordable prices. Nairobi, the capital city, faces a housing deficit of about 80,000 units each year. So far, the demand for housing is much higher than the supply can manage. If you’re looking into property development opportunities, Kenya may be a hotbed filled with unmet demand.
There is great opportunity for high ROI
Due to this deficit in supply, the property prices in the country have increased 3.46 times in the last 15 years alone. Today, the rental income has grown to 9.7% since 2014 and that momentum does not seem to be slowing down.
Rental income is a great retirement plan
If you invest in good rental properties in well placed markets; maintain these properties and hold good landlord-tenant practices, this property could be one of the best retirement plans you will have. Unfortunately, not many people have the discipline to save for their retirement. Which makes investing in good rental properties one of the best ways to ensure that you will have money in your twilight years. Especially with the burgeoning real estate market in Kenya, this is a viable long-term investment strategy.
Construction materials and services are available at an affordable rate
The beauty of any given industry being as robust as the Kenyan real estate market is that the supporting services will be available at an affordable rate due to competition. With the growth of the property market, more and more companies have gone into providing construction materials and services. This means that you have better, cheaper and more diverse options from which you can choose.
The country is experiencing a general improvement in her infrastructure
From the Thika Super Highway to the proposed and underway SGR railway project, Kenya is general experiencing a golden age when it comes to infrastructure development. What this means is that there will be more opportunities coming up, from both the local and international communities. It also means that the country is poised to see more and more rural to urban migration as well as urban to rural migration because of the open transportation links. Whichever way you look at it, people are going to need good housing.
It makes good financial sense to invest remotely in the Kenyan real estate industry at the moment. The barriers to entry are still not as dire and some projects are still not as capital intensive as you would expect.
If you are wondering if remote investing is a realistic option, here is a nice Rick Otton podcast featuring a UK property investor making deals in a different country. Enjoy!